Why do developing nations often have low labor productivity? Are the workers just lazy?
What will be an ideal response?
Laziness is a loaded term that explains little about low labor productivity. Labor productivity is directly affected by the amount of physical capital available to workers and the level of human capital (education, health) in the work force. DVC lack both physical and human capitals that enable workers to produce more output per worker. Furthermore, highly skilled and productive workers may opt to leave a DVC and seek employment in an IAC. This brain drain contributes to the productivity problem in DVC.
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Which of the following is a true statement about the multiplier?
a. The multiplier rises as the MPC rises. b. The smaller the MPC, the larger the multiplier. c. The multiplier is a value between zero and one. d. The multiplier effect does not occur when autonomous expenditure decreases.
If consumption is $750 when real disposable income is $1,000, the average propensity to consume is
A) 0.50. B) 0.25. C) 0.80. D) 0.75.
The fall in the money multiplier and money supply during the Great Depression
a. suggests that the public but not banks can be a major participant in the money supply process. b. implies that banks but not the public can be a major participant in the money supply process. c. means that neither the banks nor the public were involved in the money supply process. d. illustrates that both the public and banks can be major players in the money supply process.
The long run is a period of time:
a. that is too short to change the size of a firm's plant. b. that is long enough to permit changes in all the firm's inputs, both fixed and variable. c. in which production occurs beyond one year. d. in which production occurs beyond five years.